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Hard Money Loan Calculator
A hard money loan calculator estimates the true cost of short-term flip financing: origination points (a percentage of the loan paid upfront), interest over the loan term, and the monthly interest-only payment. On a $200,000 loan at 2 points and 11% interest for 6 months, that's $4,000 in points plus about $11,000 in interest.
Points = Loan × Points% · Interest ≈ Loan × Rate% × (Months ÷ 12) · Monthly = Loan × Rate% ÷ 12
How it works
Hard money loans fund fast and lend against a property's value rather than your credit, which makes them the common choice for flips — but they're expensive, and the cost has two parts. Origination 'points' are charged upfront as a percentage of the loan, and interest accrues over the term, usually on an interest-only basis.
Enter your loan amount, points, rate, and term to see the upfront points cost, the total interest you'll pay over the project, and the monthly interest-only payment that feeds your holding costs. Because these loans are pricey, a faster flip directly cuts the interest you pay.
Run the whole deal in FlipOS
This tool covers one number. FlipOS underwrites the full deal across 12 strategies — ARV, the 70% rule, rehab, holding costs, and worst/base/best scenarios — then manages the project end to end. 14-day free trial, no credit card.
Get started freeFrequently asked questions
- How do you calculate hard money loan costs?
- Two parts: origination points (the loan amount times the points percentage, paid upfront) and interest (typically interest-only — the loan times the annual rate, prorated for the number of months you hold it). Add them for the total financing cost.
- How much do hard money loans cost?
- They commonly charge around 2–4 points upfront and roughly 9–13% interest, though terms vary by lender and borrower. They're more expensive than conventional loans, which is the trade-off for speed and value-based underwriting.
- Are hard money payments interest-only?
- Usually yes. Most hard money loans require interest-only monthly payments during the term, with the full principal due when you sell or refinance — which keeps monthly carrying costs lower during the flip.